WTO
Committee Explores Initiatives to Increase Developing Countries’ Trading
Capacities
Special and differential treatment for developing countries,
and particularly for least-developed countries (LDCs), featured in WTO members’
discussions at a meeting of the Committee on Trade and Development on 29 March.
The United Kingdom’s preferential scheme for imports from developing countries and
LDCs was also presented at a session dedicated to preferential trade arrangements
held the same day.
The Committee
considered the WTO Secretariat's latest
paper on special and differential provisions for developing countries,
which indicates that a total of 155 such provisions are contained in WTO agreements.
These include flexibilities, such as longer transition periods to implement WTO
agreements or higher import tariffs. The aim is to help developing countries increase
trade opportunities and safeguard their trade interests. The Secretariat paper contains
updated information on how the provisions in WTO agreements and decisions are being
implemented."
The chair
of the Sub-Committee on LDCs, Ambassador Monique Van Daalen
of the Netherlands, said that recent data point to COVID-19's severe impact on LDCs
due to their weak health care systems, economic vulnerabilities and lack of financial
resources. WTO members continue to highlight the importance of facilitating trade
in medical supplies and essential goods and to express their determination to help
LDCs recover from the crisis, she said. The Sub-Committee will monitor the new global
Programme of Action for LDCs, which is expected to be
adopted at the Fifth United Nations Conference on LDCs due to take place in Doha,
Qatar, in January 2022. The Istanbul Programme of Action
for LDCs ended in 2020.
Chad
said, on behalf of the LDC Group, that
dependence on their trading partners' economic wealth, a weak level of industrialization
and lack of diversification are undermining LDCs' integration into the global trading
system and their economic recovery from the COVID-19 crisis. Technology transfer
and enhanced market access could help LDCs boost their resilience to future shocks
and build a robust economy. WTO accession also features among their priorities,
Chad said. Eight LDCs are currently
in the accession process.
The WTO's
Institute for Training and Technical Cooperation presented a new online portal which
allows users to apply for trade-related technical
assistance and training activities. The courses are designed to
help government officials and others, such as parliamentarians, from developing
countries, strengthen their understanding of trade-related issues. The online tool
is available via the WTO's Technical Assistance
Management System, which contains information on the audience for
each activity and eligible candidates.
The International Trade Centre presented
initiatives aimed at helping developing countries mitigate the impact of the COVID-19
pandemic. This includes She Trades, market analysis tools and
trade facilitation projects to help women, young people and micro, small and medium-sized
enterprises connect to global markets, including to global value chains. Africa
is receiving support for implementing the African Continental Free Trade Area. Fostering
environmental protection, promoting development and an inclusive economy, and correcting
trade imbalances are some of ITC's objectives.
Ambassador
Dr Muhammad Mujtaba Piracha of Pakistan was elected as the Committee's new chairperson.
At a
session dedicated to preferential trade arrangements, the United Kingdom said that
70 developing countries and LDCs can enter its market under preferential conditions,
in accordance with its "Generalized System of Preferences" scheme, which
entered into force on 1 January. For LDCs, market access is duty-free and quota-free
(except for arms and ammunition). The document can be consulted here.
The UK's
preferential scheme broadly replicates the market access available to developing
countries under the European Union's scheme. "Targeted trade assistance linked
to stable and predictable rules allows for cross border trade to transform economies,
unlock growth and reduce poverty", the UK said. "We believe that the UK's
scheme will help these eligible countries to trade more and have a positive impact
on their economies." The UK's scheme will continue to apply once a country
is no longer classified as an LDC or a low/lower middle-income country for a period
of three years.
Developed
countries are authorized to grant preferential conditions to imports from developing
countries through non-reciprocal preferential schemes under the WTO's Enabling Clause, in particular
the Generalized System of Preferences. Information on the Generalized System of
Preferences schemes and other non-reciprocal preferential schemes of WTO members
can be found in the WTO's Database on Preferential
Trade Arrangements.
Regional
trade agreements among developing countries were reviewed at a session also held
on 29 March.
Under
consideration was the revised Treaty of Trade
between India and Nepal, which came into force in October 2009.
India is Nepal's largest trading partner both in terms of import and export of goods
and covered about 62.2 per cent of Nepal’s total trade for 2019 and 2020. Nepal
is India's second largest trading partner in South Asia and one of the top 10 export
destinations of Indian goods globally.
The revised
treaty aims to facilitate, expand and diversify trade among the parties in a more
transparent and predictable manner. It provides for simplifying, standardizing and
harmonizing customs, transport and other related procedures and developing border
infrastructure. Each country's goods are treated in a similar way to the goods produced
domestically under the treaty, mirroring the WTO's "National Treatment principle".
The accord also provides for India to assist Nepal in increasing its capacity to
trade. This includes by improving technical standards, quarantine and testing facilities
and human resources.
A reminder
was made for members to notify all accords, in accordance with the WTO's Transparency Mechanism
for Regional Trade Agreements. Although deviating from the
WTO principle of non-discrimination, these agreements are allowed under
WTO rules to help developing countries meet their development objectives and further
integrate into the global economy. The consideration is based on a factual presentation
prepared by the WTO Secretariat and
questions and replies between WTO members.